China International Capital Corp. (CICC), a Beijing-based investment bank, plans to raise US$1 billion in an initial public offering in Hong Kong this year, the Wall Street Journal reported, citing people familiar with the matter.
The bank intends to lodge an application to the Hong Kong stock exchange in the coming weeks for the planned share sale and listing that could come as early as October, the report said.
CICC was formed in 1995 by Morgan Stanley and China Construction Bank as China’s first Sino-foreign joint-venture investment bank. Morgan Stanley sold its stake in 2010 to a consortium that included private-equity firms KKR and TPG Capital.
Central Huijin Investment, a unit of China’s sovereign-wealth fund, is currently the largest shareholder in CICC with a 43.35 percent stake, according to the report.
Singapore’s GIC is said to own 16.35 percent, while TPG Capital has 10.3 percent and KKR 10 percent.
An IPO will provide an opportunity to KKR and TPG Capital to exit their investments.
CICC has played a key role in advising the Chinese government on state-owned enterprise reform and guiding the listing of the country’s major overseas IPOs.
The investment bank has offices in Hong Kong, New York, London and Singapore.
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